Digital Transaction, Digital Currency, Digital World. These words are very common these days and are sure to appear at least once, every day, in our day to day life. These words will continue to be a part of our professional and personal life, as long as technology continues to rule this world. However, these words are not limited to just hearing them and feeling excited about what they have to offer. It’s all about how secured they can be expected to be. We have seen many new technologies based and technologies backed innovations in the recent past. One amongst those which has no doubt taken this world by storm is the cryptocurrency and Blockchain Technology. We have seen the amount of impact both these can make on a business set up. However, it is to be understood that like all other products which have been developed using niche technologies, Blockchain is also susceptible to threats and is vulnerable. What could those be and what are the solutions in mind? This article focuses bit more about blockchain security vulnerabilities and it’s solutions

Blockchain Security Technology

The major attraction of implementing Blockchain security is to try and protect the ever vulnerable cryptocurrencies, from cyber attacks. As the physical world and digital world unite, data becomes one of the very key components of this unification, which needs to be protected at all times against all odds. As much as Blockchain security is considered as a safe bet, there are certain security vulnerabilities which need attention. Blockchain security vulnerabilities issues still continue to keep developers on their toes. Let’s take a look at what those could be.

Blockchain Security Vulnerabilities

It is well understood that Blockchain is a form of a digital ledger which stores information in blocks across a network of computers. The hope for data security which this statement imbibes makes it hard to believe that even a technically brilliant innovation such as a Blockchain can be vulnerable. But yes! Blockchain security risks do exists and they must be recognized and solved for Block chain technology to sustain itself. Here are some of the blockchain security vulnerabilities.

  • Endpoint Vulnerabilities: when we think about the involvement of humans in specific, this is more to do with a point where human intervention can be thought about and the nearest occasion is with computers, as they are used to develop Blockchain applications. The vulnerability looms large during the input and output of data during the process of Blockchain development
  • Blockchain Security issues with Security Key: To access any Blockchain data, Public and Private Keys play a very vital role. These are the two types of keys, which is a string of cryptic characters, entrusted with the action of protecting Blockchain data. But as are other critical codes, susceptible to data hacking in particular, Blockchain data is also vulnerable to being either hacked or stolen by hackers who can even go to that extent, by attacking the weakest point of your whole system.
  • Risks through Sellers: Buying any type of applications from vendors carry certain amount of risk. Blockchain applications are no different. We have also heard about smart contracts, connected to Blockchains, which are undeniably faster, transparent and conflict free way of exchanging any high profile or critical document. However Blockchain products involving smart cards are more vulnerable and care should be taken to avoid any threat.
  • Data Upgradation: Usually this does not figure as a threat concept for any software application scale up, unless there is a malware which gets downloaded along with the new version to be scaled up to. However, the Blockchain security risk could be more evident here as after certain initial upgradations, the additions tend to happen as an entire block.
  • Blockchain code not being tested correctly: Software testing plays a huge role in any type of projects. Especially Blockchains applications which have to do more with data security. An improperly tested code can be succeptable to cyber-attacks.

Having taken a brief look at what the possible sources of Blockchain security vulnerability be, let’s now get into the important part of our article; Competent Solutions for these issues.

Competent Solutions for Blockchain Security Vulnerabilities

The way Blockchain technologies continue to catch the attention of companies worldwide; there is little doubt that its progress is going to reach the next level. However while anticipating a good growth we need to even focus at how to solve the risks associated with Blockchain Security.

  • Data Hacking continues to pose considerable threats to every new application in addition to successful existing ones. Access to critical data can be limited to only those who consistently handle them. Or in other words, data security can be under the control of single operations professional and not the entire team. More because Blockchain applications are more vulnerable to insider threats than outside threat.
  • To keep away from hacking, many companies have resorted to using hardware security modules which are found well-equipped with Blockchain handling protocols, to counter any threats from hackers.
  • In a private Blockchain environment, the no. of verification stages for transactions can be increased thereby ensuring that transaction is validated by authorized and trusted business participant entities only.
  • The distribution of cryptography keys must be done securely within the network of participating entities only.
  • A domain specific Blockchain design can go a long way in helping secure any major Blockchain Security Risk.

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You might have some blockchain technology questions

How does bitcoin security work?

A transaction is a transfer of value between Bitcoin wallets that gets incorporated in the blockchain. Bitcoin wallets keep a secret piece of data called a private key or seed, which is used to sign transactions, providing a mathematical evidence that they have come from the owner of the wallet.

What makes blockchain so secure?

blockchain, as the name entails, is a chain of digital “blocks” that contain records of transactions. The records in the blockchain are secured through cryptography. Network contributors have their own private keys that are assigned to the transactions they make and act as a personal digital signature.

What are the major risks that could be associated with Blockchain Security?

Blockchain security is susceptible most often to attacks by hackers. In addition, improperly maintained security keys and improper management of key security protocols can also lead to Blockchain Security Risks.

How can Blockchain Risks be minimized?

Blockchain Risks can be minimized to a large extent by keeping a close eye on security keys, especially in the case of Private Blockchains. At the same time, the number of verifications steps during each transaction can be enhanced to ensure a fool proof Blockchain supported transaction.

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